SIE practice questionmediumSEC Rules
An employee of a public company trades stock using confidential company information learned during their job. According to SEC rules, this is:
- AIllegal insider trading✓ Correct answer
- BPermitted for non-executives
- CAcceptable if no profit is made
- DAllowed if reported to HR
Explanation
Why A — Illegal insider trading
Material, nonpublic information obtained through employment is inside information. Trading on it is illegal insider trading, regardless of one's role or reporting.
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